|"The fastest growing region of the fastest growing large economy"|
Professor Michael Enright
In the past 25 years, many Hong Kong manufacturers have moved operations into the Pearl River Delta region of southern China. This shift has fuelled massive economic growth in the PRD, as well as creating a huge pool of wealthy consumers.
Many overseas businesses rely on the combination of Hong Kong and PRD to source, sell and manufacture their products competitively and efficiently.
WHY THE PEARL RIVER ?
The following is a snapshot.
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1. China's first Special Economic Zone
Market forces, and business-friendly local governments, have led the PRD's economic growth.
2. Proximity to Hong Kong
25 years ago, the PRD was dominated by arable farming and small rural villages. Hong Kong investment has turned the region into the mainland's economic powerhouse. Hong Kong companies now employ 11 million workers in their PRD operations.
Operations in the PRD also benefit from the value-adding services easily available in Hong Kong's. Companies can source or manufacture competitively in the PRD and use Hong Kong's logistical, financial, legal, design and marketing services to export their products to the world.
3. China's top manufacturing and export region
World's top manufacturer and exporter of watches, telephones, radios, toys, footwear and clothing.
4. Rapid pace of development
Consistent double digit annual GDP growth in most PRD cities.
5. World class factories
Major PRD cities are developing world class manufacturing facilities, manned by a skilled workforce with strong quality control. Many factories are foreign, or Hong Kong-owned.
6. Stable workforce and low labour costs - skilled managers
Migrant workers ensure a ready and stable supply of labour. Many companies use Hong Kong managers, or Hong Kong-trained managers to run their operations.
7. Wealthiest region and biggest spenders
The PRD is home to more than 24 million permanent residents (this does not include the migrant labour force). Rapid economic development in the region has made them the mainland's biggest spenders.
8. Nationwide distribution
Many foreign-owned companies use Hong Kong and the PRD as their distribution base for selling into China. PRD consumers also provide a strong bell-weather for testing overseas products on the domestic Chinese market.
9. Room for development - western PRD
The eastern side of the PRD (Shenzhen, Dongguan, Guangzhou) is the most developed economically. The western areas are open for development. Improved road and rail links - including a bridge linking Hong Kong with the western side of the PRD - are planned to open up this area.
Pearl River Delta
Guide to Doing Business in China
Useful Links for China Trade